Down Payment Calculator
Find the down payment amount and resulting loan amount for any purchase price.
Try an example
$80,000.00
About this calculator
What Is a Down Payment?
A down payment is the portion of a large purchase — most often a home or a car — that you pay up front, out of your own pocket, instead of financing it. The remaining balance becomes the loan. In a home purchase, the price equals the down payment plus the mortgage amount, and the down payment is usually quoted as a percentage of the price. This down payment calculator helps you see how a given percentage translates into dollars, how it changes the loan, and how much cash you need in total.
How the Calculation Works
Down payment = Price × Down payment %, and Loan amount = Price − Down payment. On a $400,000 home, 20% down is $80,000 and the loan is $320,000. Working backwards, if you have $100,000 saved and plan 20% down, the most you can aim for is $500,000 — before allowing for closing costs.
Worked Example
A $400,000 home with a 20% down payment requires $80,000 down, leaving a $320,000 loan to finance.
How Much Should You Put Down?
- 20% on a conventional mortgage is the classic target, because it usually avoids private mortgage insurance (PMI).
- 3%–5% is possible with some conventional and first-time-buyer programs, at the price of higher monthly costs and PMI.
- 3.5% on FHA loans and 0% on some VA and USDA loans are options for eligible buyers.
- Cars: 10%–20% is common, which also helps you avoid owing more than the car is worth.
Don't Forget Closing Costs
The down payment is rarely the only cash you need at closing. Lender fees, appraisal, title insurance, inspection and prepaid taxes can add roughly 2%–5% of the home price. Budget for them separately from the down payment so you do not drain your savings to zero on closing day.
Trade-Offs of a Bigger or Smaller Down Payment
A bigger down payment means a smaller loan, a lower monthly payment, less interest overall and often a better rate. A smaller one keeps more cash available for emergencies, repairs and moving costs, and gets you in the market sooner. See how each choice changes your payment with the Mortgage Calculator or the Auto Loan Calculator.
Worked example
A $400,000 home at 20% down needs an $80,000 down payment, leaving a $320,000 loan.
Frequently asked questions
Why is 20% down often mentioned as a target?
On a conventional mortgage, putting down 20% avoids private mortgage insurance (PMI), an extra monthly cost lenders charge on smaller down payments. It's a common benchmark, not a requirement.
Can I buy with less than 20% down?
Yes — many loan programs allow 3-5% down (or less for VA/USDA loans), typically with PMI added until you build enough equity.
Does a bigger down payment always make sense?
It lowers your loan amount, monthly payment, and total interest, but ties up more cash up front — whether that trade-off is worth it depends on your other financial priorities and how much cash reserve you want to keep.
